Bitcoin (BTC) Price Analysis: Steady Under Selling Pressure, Recovery Possible if Bulls Push Prices Above $66,000 Resistance

Bitcoin is steady at press time but is under immense selling pressure after the liquidation of August 27. Technically, there is a tinge of weakness.

Bitcoin price action is displaying a tinge of weakness as الكبير selling pressure mounts following the liquidation of August 27. However, this outlook could quickly shift if BTC bulls manage to push prices above the immediate resistance at $66,000.

This reaction point marks the highs of August 23, and a subsequent leg up will confirm the uptick of August 8. If prices fail to breach this level, they could slip into a consolidation phase.

Binance Traders Are Net Bearish

Previously, traders were cautiously optimistic, acknowledging Bitcoin’s (CRYPTO: BTC) volatile nature and historical volatility. Despite prices stabilizing at spot rates, an analysis on X highlighted that traders on Binance, the largest exchange by client count, are showing a net bearish preference.

The analysis observed that more traders are placing shorts, a net bearish development for the world’s most valuable coin. As more retailers place bearish bets, the coin could carve in more losses, confirming the August 24 price action.

This shift in sentiment, favoring sellers, comes as the majority of traders are neutral on the coin. According to the CMC Crypto Fear and Greed Index on August 28, traders are adopting a wait-and-see approach and are mostly neutral.

This has been the dominant sentiment since prices tumbled in early August, when most traders panicked and pushed sentiment to the most “fearful” territory since early September 2023. Looking at the sentiment chart, the only time traders were extremely greedy over the last year was when Bitcoin rose to all-time highs, rallying to $73,800.

Hence, if prices are weak and sentiment is neutral, it could help to aid optimistic bulls, at least in the short term. A recovery above $63,000, helping reverse August 27 losses, may further spark demand. This expansion may be the building block for even more gains above August 2024 highs.

Why Is Funding Rate Positive Amid Falling BTC Prices?

Even with the optimism, it is emerging that the average funding rate across Binance, Bybit, and OKX, is in positive territory at 0.002%. This means that short-leverage traders are getting paid for holding their positions.

Typically, this means that perpetuals are trading at a premium versus the spot price, a development that could incentivize more sellers and fuel the downtrend.

Usually, funding rates are positive when prices rally, pointing to bullish sentiment. It turns negative whenever prices tank, meaning leverage short sellers have to pay those betting for prices to rally.

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